This week saw gold move sideways, while silver dips towards historic peaks at $50. But quietly, there appears to be a move of bullion into stronger hands. Silver’s open interest on Comex is an illustration:
Note how open interest has been increasing since the highly oversold level of last April — not dramatic, but coupled with healthy trading volumes, silver paper appears to be moving into stronger hands:
These are still early days, but we see something similar in gold. There is a further clue: the insiders’ insider Jamie Dimon mentioned $10,000 gold and called for foreign holders to retain their vaulting in the US saying it is the safest place. Clearly, bullion holders disagree. But when the boss of the largest bullion bank suggests gold could go to $10k we should sit up and take notice. And when we look at Comex, stands for delivery so far this year total over 600 tonnes. Furthermore, gold has been leaving Comex’s inventory at a 250-tonne pace this year so far:
